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5 - Global ideology and voter sentiment as determinants of international financial liberalization

Published online by Cambridge University Press:  04 August 2010

By
Dennis P. Quinn  and
A. Maria Toyoda
Edited by
Beth A. Simmons ,
Frank Dobbin  and
Geoffrey Garrett
Dennis P. Quinn
Affiliation:
Professor in the Strategy, Economics, Ethics, and Public Policy group, McDonough School of Business Georgetown University
A. Maria Toyoda
Affiliation:
Assistant Professor of Political Science, Villanova University
Beth A. Simmons
Affiliation:
Harvard University, Massachusetts
Frank Dobbin
Affiliation:
Harvard University, Massachusetts
Geoffrey Garrett
Affiliation:
University of Southern California
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Summary

Introduction

Scholars have long argued that the spread of ideas and values matters for the adaptation and reform of government policies. (See, for example, the essays in Hall 1989.) In this chapter, we investigate whether and how either liberal or restrictive international financial policies on capital account regulation spread globally, both through the direct effects of changes in global ideology on government policy and indirectly, through policy diffusion between other states.

In the following sections we: (1) provide a detailed account of the mechanisms of diffusion, focusing on the theoretical basis for the global, grassroots spread of ideas that affect government policies; (2) identify valid indicators of ideological change that will aid in identifying the mechanisms through which it is diffused; (3) discuss our models and methods, focusing on how ideology is diffused indirectly and globally through influence on other governments' policies; and (4) report the results of our study, and offer concluding remarks.

How ideas spread

While global convergence toward political and economic liberalism might be a defining story of the last two decades of the twentieth century, we find scant evidence that convergence around a particular set of policies regarding capital account liberalization is consistent over time or space. During the entire twentieth century, many distinct waves of international financial openness and closure diffused worldwide.

Based upon the work of many scholars, we know many of the domestic and international political and economic forces that account for change in international financial openness.

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Chapter
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The Global Diffusion of Markets and Democracy , pp. 173 - 219
Publisher: Cambridge University Press
Print publication year: 2008

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